§ 336.3-205 — Special Endorsement; Blank Endorsement; Anomalous Endorsement
Plain-Language Summary
A 'restrictive' endorsement, such as 'for deposit only,' limits what can be done with the instrument. A bank that takes an instrument marked 'for deposit only' must deposit it in the named account.
336.3-205 1992 c 565 s 114
336.3-205 SPECIAL ENDORSEMENT; BLANK ENDORSEMENT; ANOMALOUS ENDORSEMENT.
(a) If an endorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the endorsement identifies a person to whom it makes the instrument payable, it is a “special endorsement.” When specially endorsed, an instrument becomes payable to the identified person and may be negotiated only by the endorsement of that person. The principles stated in section 336.3-110 apply to special endorsements.
(b) If an endorsement is made by the holder of an instrument and it is not a special endorsement, it is a “blank endorsement.” When endorsed in blank, an instrument becomes payable to bearer and may be negotiated by transfer of possession alone until specially endorsed.
(c) The holder may convert a blank endorsement that consists only of a signature into a special endorsement by writing, above the signature of the endorser, words identifying the person to whom the instrument is made payable.
(d) “Anomalous endorsement” means an endorsement made by a person who is not the holder of the instrument. An anomalous endorsement does not affect the manner in which the instrument may be negotiated.
History:
History: History:
1992 c 565 s 26